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HomeMy WebLinkAbout01 - MinutesAgenda Item No. 1 June 11, 2013 CITY OF NEWPORT BEACH City Council Minutes Study Session May 28, 2013 — 3:00 p.m. I. ROLL CALL - 3:00 p.m. II. Present: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Excused: Mayor Pro Tem. Hill 1. CLARIFICATION OF ITEMS ON THE CONSENT CALENDAR In response to Council Member Gardner's question regarding Item 8 (16th Street Pump Station and Dolphin and Tamura Water Wells Improvements), Public Works Director Webb reported that the Southern California Edison (SCE) rebate will be used to pay for part of the project. Council Member Petros requested clarification on Item 3 (Amendment to the Newport Beach Municipal Code (NBMC) Relative to Development Agreement Periodic Reviews) . Community Development Director Brandt reported that NBMC Section 15.45.050 is the part of the Zoning Code that discusses public noticing. Regarding Item 19 (Initiate Amendments to the Land Use Element), Mayor Curry indicated that he will be asking that two additional public members be included to the makeup of the Land Use Element Amendment Advisory Committee. 2. BUDGET DISCUSSION - SECOND SESSION 1100 -20131 City Manager Kiff noted that today's Study Session was the second session to discuss the City's budget. He utilized a PowerPoint presentation to address the process; noted that there will be a separate presentation relative to the Balboa Theater; reported that the budget is balanced; and stated that there will be increases in the City's investments in community - serving facilities, beautification projects, and in the number of police officers in the street, while reducing staffing levels. City Manager Kiff provided background on the Balboa Theater, including restoration by the Balboa Theater Foundation, permits obtained, and fundraising needs. He presented a proposed concept in which the City will issue a $3 million challenge loan using existing Facilities Finance Planning (FFP) reserves that are expected to be replenished in May of 2014 from receipt of a public benefit fee of $19 milli on from the Irvine Company, and indicated that the City would have the first mortgage on all improvements since it owns the land and listed contingencies and conditions of the loan. Council Member Gardner commented on the plan and on the consequences if the loan cannot Volume 61 - Page 171 City of Newport Beach City Council Study Session May 28, 2013 be repaid. Craig Smith, Member of the Board of Directors of the Balboa Performing Arts Theater Foundation, introduced other Board Members in attendance and supporting members of the public. He addressed the need to renovate the theater and emphasized the need to move the project forward as soon as possible. He reported that the Foundation hopes to 'start construction in September 2013, addressed the development of a new expertly prepared business plan, and discussed the recruitment of new Board Members and an Executive Director, on -going fundraising efforts, and the development of a performing arts education program in local schools. He reported that the organizatiori'is prepared to provide 50% of the funding from private sources and addressed the budget_ He discussed current assets and expenses and reported holding a Letter of Intent from First Foundation Bank for $2 million, in addition to $1 million of cash and pledges in hand. Mr. Smith also addressed benefits to the City, the increased value of the building, and increases in local tax revenues. He believed that this project will be a catalyst for other economic revitalization in Balboa Village and an important' addition to performing arts in the City. He addressed risk management, repayment of the loan, the value of the land, and improvements; and reported that, due to this process, the City would eliminate the liability of a non- compliant, City -owned structure. Dan :Miller, The Irvine Company, addressed - contributions of the organization in terms of public benefits through development agreements and reported that The Irvine Company will be making its last contribution of $19 million to the Cd y for public benefits within the next year. He spoke in support of the project, the public benefits derived from it and The Irvine Company's support for the use of some of their fee payment for this project, similar to what was done in support of the OASIS Senior Center development. Recreation and Senior Services Director Detweiler commented on the Department's role in the proposed project and believed that there will be great demand for performing arts classes. She addressed the benefits of cooperative partnerships and spoke in support of the project. Jo King, Member of the Board of Directors for the Balboa Performing Arts Theater Foundation, spoke in support of the proposed project and read a- statement of support from Tod M W-te, Member of the Board of Trustees of the South Coast Repertory Theater. Mr. Smith read a letter of support from Robert Smith, Chair of the City Arts Commission, who was unable to attend at this time. John Forsyte, President of Pacific Symphony, spoke in support of the proposed project and addressed the importance of collaboration. He addressed - revenue opportunities and addressed challenges with fundraising. He believed -that fundraising will be easier once the project begins. Julia Foster, Chief Development Officer for the Irvine Barclay Theater, speaking on behalf of Douglas Rankin, President of the Irvine Barclay Theater, who was unable to attend the meeting indicated that he supports the project. In response to a question from Council Member Gardner, she addressed public/pn'vate funding sources contributed to the Irvine Barclay Theater. Bob Martin, Executive Director of the Lensic Theatre in Santa Fe, New Mexico, spoke in support of the proposed project, believing that art and culture are integral to any community and that the theater will be an economic catalyst. Steven R.osansky, President and CEO of the Newport Beach Chamber of Commerce, spoke in Volume 61 - Page 172 City of Newport Beach City Council Study Session May 28, 2013 support of the project and noted that the Chamber Board voted unanimously to endorse the proposed plan. Rick Stein, Executive Director of Arts in Orange County, presented statistics related to the economic impacts of non - profit art programs on the community. He believed that the project will be a great boon to the economic revitalization of the area. He addressed the organization's business plan and indicated that a combination of earned revenue and contributed income will enable the theater to operate in'the black. Council Member Henn expressed his appreciation to the Balboa Performing Arts Theater Foundation Board for their efforts to move the project forward and addressed his belief that the project will be an anchor to the revitalization of Balboa Village. He noted that what is being presented is a concept to see if there is a viable path to get the theater up and running. He addressed the need for a credible business plan and to enhance the expertise on the Board, and noted the asset to the City. Council. Member Henn indicated that he looks forward to pursuing the implementation of the plan, noting that no final decisions will be made tonight. Council Member Gardner commented on the business plan, requested clarifie-ition about the process going forward, expressed concerns with the tight timeline, and stressed the need to ensure success. Council Member Henn reported that the plan is to ask the City to engage an expert to review the new business plan and develop a scope of work for peer review to advise the City Council. Council Member Daigle indicated that she will support the proposal. Council Member Selich indicated he supports moving ahead, but expressed concern with allowing municipal support for theater operations. He believed that the City's decision to support the operation in the future should.be made up front. Council Member Petxos expressed support for the conceptual proposal and believed that it will make a strong impact in the Balboa Village revitalization efforts. He stressed the need to pay attention to details and thoroughly evaluate the business plan. Mayor Curry acknowledged the efforts of Council Member Henn on this project. He agreed that the proposed project will be a catalyst to other investments in the community. He indicated support for the project, but stated that the business plan should not be predicated on the City's additional operational support. City Manager Riff reported that the item will be categorized under the budget checklist as an assignment of funds until all of the conditions are met. Public Works Director Webb presented information regarding Street Light Circuit Rehabilitation and conversion of all of them to LED; addressed streetlight circuit rehabilitation, including the number of lights for each as well as total costs; and discussed projects completed and the average energy savings obtained. Following discussion regarding replacing lamps, the average life of the new lights, and benefits to the City, the City Council expressed support for moving the project forward. Public Works Director Webb highlighted proposed Back Bay View Park Enhancements. Council Member Selich commented on efforts to complete the project without having to bring the project for Coastal Commission review. Volume 61 - Page 173 City of Newport Beach City Council Study Session May 28, 2013 Council Member Gardner commented on the proposed expansion of hedge treatments and the addition of parking. She also emphasized that adding amenities for cyclists will be critical. Council Member Henn believed that the project needs to be reinstated and moved forward. City Manager Kiff addressed the Crystal Cove Historic District, including restoration phases, and recommended that the City contribute an amount equivalent to the Transient Occupancy Tax (TOT) associated with the restoration. Mayor Curry noted that the Crystal Cove Historic District has raised rates and that the proposed contribution of $20,000 per year represents the City's portion of TOT towards restoration which would generate additional revenue in the future. Following a discussion regarding accommodation cosi8, the City Council expressed their support for the proposal. Council Member Selich suggested installing a City way - finding sign near Crystal Cove to identify the area as being part of the City. City Manager Kiff presented details relative to the Newport Pier Concession Building and addressed costs to remodel versus constructing a new building. He requested direction from the City Council regarding the matter. Discussion followed regarding the possibility of demolishing the building and implementing food truck vendors instead, the need to possibly change the Municipal Code regarding food trucks, and the need for additional information before making a formal decision on the matter, including costs for the various options. Mayor Curry suggested including money in the budget for the project and issuing a Request for Proposals (RF13) to gauge the interest of possible concessionaires. C. City Manager Kiff provided information on a proposed Arts and Cultural Activities Master Plan, including areas in which the plan would assist the City. In response to Council Member Daigle's question, City 'Manager Kiff reported that the Civic Center site already has an Arts Master Plan with 40 or 50 spaces for the installatinn of public art, but the sites would be incorporated as part of the overall Master Plan. Council Member Henn commented positively on the proposal and stressed the need to program recurring funding for arts and cultural activities. Council Member Gardner noted that the City's Arts Commission is developing a master plan and hoped that they would be an integral part of the process. City Manager Kiff addressed City Support for Associations and Business Improvement Districts (BIDs), including allocations and terms for each. Discussion followed regarding net impacts to the City budget and potential operational savings, which BIDs would remain, and which would be disestablished. Council Member Gardner suggested structuring the matter to include a one -year review. City Manager Kiff reported on Newport Beach Television (NBTV), noting that the Volume 61 - Page 174 City of Newport Beach City Council Study Session May 28, 2013 proposal has been included in the budget. He reported that the proposal would move NBTV operations to Newport Beach and Company and addressed related fees. He added that the City would retain the equipment in the Council Chambers and there would be a list of "must carry" City shows. He pointed out that Newport Beach and Company would also need to adhere to the City Attorney's guidelines on programming. He presented examples of "must carry" shows. Discussion followed regarding the types of programming and the need to ensure consistent programing. City Manager Kiff reported that an UP was not issued on the item and commented on the unique opportunity to provide a boost to the existing channel. Council Member Daigle questioned the added value of not going through the RFP process on this matter. Council Member Henn believed that the change would provide an opportunity to complete the integration of branding and City identification for consistent messaging about the City. Council Member Gardner commented on the - ability to protect integrity while allowing flexibility. City Attorney Harp noted that the proposal would allow for the development of programming which allows the City to control the messaging so that it does not become an open forum. Gary Sherwin, President and CEO of Newport Beach and Company, explained the concept envisioned and noted that the Company is the City's marketing agency and tells Newport Beach stories on a global scale. He addressed opportunities for content and the possibility of creating a series of lifestyle shows. Tom Johnson, Newport. Beach and Company, addressed potential programming that will positively impact the community, including shows that will enhance local businesses, highlight tourism activities, and inform residents of City programs and events. Discussion ensued regarding the possibility of programming Commission meetings and the need for additional discussions with Newport Beach and Company. Mayor Curry commented positively on the proposal. Council Member Selich expressed concerns with using the. channel to promote the City commercially and the relationship between the City and Visit Newport Beach. He agreed that current programming needs improvement, but wondered if this is the best way to do it and whether other options should be explored. Discussion followed regarding present City expenditures on cable resources, other cities that have taken similar steps, and the possibility of expanding the City's coverage. City Manager Kiff noted the benefits of Council's input and reported that adoption of the budget does not trigger the proposed action since details of the proposal would need to be further vetted by Council before final approval. Council Member Henn and Council Member Daigle commented positively on the matter, but agreed with the need for further review. Council Member 'Gardner spoke in support of the item in terms of resident - serving programming. City Manager Kiff briefly addressed Film Permitting and addressed the process to date. He reported that an RFP was issued and summarized the responses received. Volume 61 -- Page 175 City of Newport Beach City Council Study Session May 28, 2013 City Manager Kiff presented details of the Facilities Financial Planning (FFP) Priority Projects, including the projects, costs, and timelines. Discussion followed regarding the West Newport land purchase. Regarding the Park Placeholder item, Recreation and Senior Services Director Detweiler reported that the project would fund synthetic turf placement at Bonita Creek Sports Park. City Manager Kiff reported that additional details of the FFP will be presented at an upcoming Council meeting. Council Member Henn emphasized that nearly all of the expending in the FFP over the planning horizon will be cash funded. City Manager Kiff reported that the FFP is funded by a small contribution from the General Fund, savings accr -ged over time. end of year savings, and developer fees. Brief discussion followed regarding the condition of the Newport Beach Police Headquarters. City Manager Kiff addressed the City's Certificates of Participation (COP) Debt Service, Council Discretionary Fund appropriations, and Special Event Support recommendations. Mayor Curry noted that special event support recommendations represent a 20% increase overall from last year's support. City Manager Kiff presented a list of groups for which funding is not being recommended. City Manager Kiff addressed Positions, specifically historical full -time positions, reductions included in the budget, part -time positions, and FY 2013 -2014 position changes. Council Member Daigle commented on the growth of salaries and benefits for Department Directors and expressed concerns regarding merit increases and possible impacts to pensions. City Manager Kiff addressed staff salary increases and pension contributions and reported that no PERS -able raises have been given at the Department Director level. He addressed the Fox- Lawson study and noted that some Department Director compensations are below the median study levels. Discussion followed regarding the Library Director's salary increase and related car allowances and benefits, the position tracker, Human Resources open positions, and the scope of work of the . Deputy City Manager /Human Resources Director position. Council Member Daigle indicated that she would support the addition of a full-tame Deputy City Manager position. Mayor Curry clarified the purpose of the increases and addressed the Library Director's compensation. City Manager Kiff added that the increase involves a cost -of -living adjustment that is generally below the rate of inflation. He added that there have been no negative impacts to the levels of service provided by the City in spite of decreases in staffing levels. He indicated that the amount budgeted does not include the deductions employees make toward their pensions. Council Member Henn noted that the adopted compensation philosophy uses the median as the starting point for evaluation and should not be construed to mean that the City should only be paying median wages. He emphasized that salaries should be based on performance. Volume 61 - Page 176 City of Newport Beach City Council Study Session May 28, 2013 Council Member Petros commented on the decreases in staffing, the CIP proposal, and the continued burdens being placed on staff. He indicated support of performance -based compensation. City Manager Kiff presented City Reserve classifications, reserve comparisons of all funds, and restricted and unrestricted reserve levels. He addressed transitioni.ng fiscal years, General Fund assignments, available appropriations in Fiscal Year 2012 -2013 and recommendations for year -end close. Discussion followed regarding FFP reserve funds, allocation for specific projects, and setting aside money for facility maintenance. Council Member Petros referenced the proposed budget amendment and requested clarification regarding the differences in the FFP allocations. City Manager Kiff presented details of the Proposed Budget, including a summary of Fiscal Year 2013 -2014 General Fund budget surplus. Council Member Henn commented on the unassigned fund balance and its possible use on checklist items. City Manager Kiff presented the proposed Budget Checklist Items for the General Fund, noting the inclusion of the City street surface rehabilitation, personnel - related items, and items not included in the checklist. He addressed the Corona del Mar entryway enhancement project, noting that staff will be returning with a proposed budget amendment for the remainder of the project. In response to Mayor Cuny's question, City Manager Kiff reported on salary savings and benefit adjustments in Public Works and on their need for additional administrative support. Public Works Director Webb reported that the City is losing one of the Traffic Technicians and that it will be back -filled withaontracted individuals. He also noted the need to allocate funds for additional contract staffing to help manage some of the large projects. In response to Council Member Petros' question regarding the West Coast Highway landscaping project, Public Wor. Director Webb reported that the full design allocation was not included in the budget, staff continues to work with Caltrans, and funding could be appropriated mid -year during the mid -year budget review process. Council Member Henn stressed the need to move the project forward and suggested including it in the checklist. Public Works Director Webb reported that staff is working to move the project forward, but noted existing challenges working with other agencies. Council Member Henn requested and received confirmation that the budget includes funding for a resident satisfaction survey. Discussion followed regarding budget appropriations for the Regional General Permit 54 (RGP54) project. City Manager Ki_ff pointed out that the unassigned balance continues to grow with the proposed checklist and provided a brief summary of the budget. He suggested revisiting the checklist after public comments. Lisa Walter, Executive Director of the Orange County Susan G. Komen Race for the Cure, Volume 61 - Page 177 City of Newport Beach City Council Study Session May 28, 2013 presented information about the organization and noted participation by Newport Beach residents and others. She noted that the event brings in revenue for the City and provides many benefits for the community. She addressed City support throughout the years and requested that Council consider increasing its support from $10,000 to $20,000. Jim Mosher referenced the City Charter regarding staffs ability to negotiate contracts, requests for professional and technical services, and providing details for budget expenditures. He believed that the budget line item descriptions should be improved. He also noted that many cities provide monthly information about warrants issued for payment and believed that the City should implement such a practice. Troy Davis, KOCI Radio, discussed the organization's request for a special event permit to hold a concert in June 2014. He addressed services for the community, activities planned for the event, vendors, the organization's experience, and success of their past events. George Schroeder commented positively on the overall budget and thanked staff for including specific items in it. He spoke in support of the Balboa Theater project and expressed concern that the proposed NBTV format would commercialize the City. Ed Trainor, Balboa Island Museum and Histonral Society, noted the attendance of Board Members and commented on the growth of the museum, number of visitors per year, support of the City, and their request of $20,000 to support their growth. He addressed the organization's long -term objectives and thanked the City for its support. Sally Molnar, Susan G. Komen Race for the Cure, discussed the benefits of the organization to the City and its residents, and requested Council's support of their full budget request of $20,000_ Council Member Gardner commented on the proposed special events grant funding applications, believed that it was well done, and suggested accepting staff s recommendations. She expressed concerns regarding providing funding for the Balboa Island Museum and Historical Society and hoped that an effort would be made to make it a broader - based historical society that encompasses the entire City. In response to Council Member Petros' question, City Manager Kiff reported that special events grant funding is cash support that can be used to offset expenses that the City may have charged for the operation of the event. He reported that fee waivers are discouraged and, therefore, funding is done through the budget process. City Manager Kiff provided Budget Checklist recommendations for Council consideration and noted a bracket reserved for the Balboa Theater with allocations pending their performance of terms and conditions. Council Member Daigle requested additional information regarding merit pay and suggested considering adding funding support for the Newport Bay Conservancy. Mayor Curry indicated that he would support the checklist, as presented, and consider reducing some of the larger allocations for this fiscal year. He expressed agreement with Council Member Gardner regarding the special events grant funding. Council Member Selich indicated support for the special events funding and the proposed budget checklist. Volume 61 - Page 178 City of Newport Beach City Council Study Session May 28, 2013 Council Member Henn indicated support for the checklist, as presented. He stated that he would be willing to consider funding for the Newport Bay Conservancy after more information is provided. Council Member Petros expressed support for the checklist and asked that staff consider appropriating funds for the West Coast Highway landscaping project to ensure that it moves forward. City Manager Kiff expressed his appreciation to staff and the City Council. 111. PUBLIC COMMENTS INCLUDING PUBLIC COMMENTS ABOUT ITEMS ON THE CLOSED SESSION AGENDA Regarding the Closed Session agenda, Jim Mosher believed that more information about the need for the decision would be helpful, in addition to information about when decisions made in Closed Sessions would result in a reportable outcome. City Attorney Harp announced items to be discussed in Closed Session. IV. ADJOURNMENT -Adjourned at 8:28 p.m. to Closed Session The agenda for the Study Session was posted on May 23, 2013, at 4:00 p.m on the City's website; on May 24, 2013, at 8:30 a.m, on the City Hall Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on May 24, 2013, at 9:00 a.m. on the City Hall Electronic Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive. r 1 City Clerk *4-* Recording Secretary Mayor Volume 61 - Page 179 CITY OF NEWPORT BEACH City Council Minutes Regular Meeting May 28, 2013 — 7:00 p.m. I. STUDY SESSION - 3:00 p.m II. CLOSED SESSION - 5:28 p.m A. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code § 54956.8): 1 matter Property: 1700 W. Balboa Blvd., Newport Beach, CA Agency Negotiator: Dave Kiff Negotiating Parties: Girl Scouts of Orange County Under Negotiation: Instruction to negotiator will concern price and terms of payment. B. CONFERENCE WITH LABOR NEGOTIATORS ( Goovernment Code § 54957.6): Heading Agency Designated Representatives: Dave Kiff, City Manager and Terri Cassidy, Human Resources Director, Negotiators Employee Organizations: All Labor Associations: Association of Newport Beach Ocean Lifeguards (AN$OL); Newport Beach City Employees Association (NBCEA); Newport Beach Employees League (- NBEL); Newport Beach Firefighters Association (NBFA); Newport Beach Fire Management Association (NBFMA); Lifeguard Management Association (NBLMA); Newport Beach Part Time Unit (UPEC, Local 777); Newport Beach Police Association (NBPA); Newport Beach Police Management Association (NBPMA); and Newport Beach Professional and Technical Association (NBPTEA) III. RECESS IV. RECONVENED AT 7:00 P.M. FOR REGULAR MEETING V. ROLL CALL Present: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Excused: Mayor Pro Tem Hill VI. CLOSED SESSION REPORT - City Attorney Harp announced that there were no reportable actions taken Volume 61 - Page 180 City of Newport Beach City Council Minutes May 28, 2013 VII. PLEDGE OF ALLEGIANCE - Council Member Henn VIII. INVOCATION - Mr. Frank Carpenter IM PRESENTATION Presentation by Southern California Edison of the Savings by Design Incentive Check - Eddie Marquez of Southern California Edison presented the Mayor, on behalf of the City, with a $261,150.14 incentive check for the City's energy efficient and sustainAility efforts related to the new Civic Center. X. NOTICE TO THE PUBLIC XI. CITY COUNCIL ANNOUNCEMENTS OR MATTERS WHICH COUNCIL MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA (NON- DISCUSSION ITEM) Council Member Gardner announced that the Corona del Mar 5K will be held on Saturday, June 1. She also commented on the recent newspaper article about the City's art collection. Council Member Petros reported that he and Community Development Director Brandt met with the Versailles residents as part of the Hoag Hospital Development Agreement follow -up. Council Member Daigle recognized the ongoLng activities and events occurring at the Back Bay Science Center. AVVMW Council Member Selich announced that the 20th Annual Balboa Island Parade will be held on Sunday, June 2. Mayor Curry announced that he partticipiated in the Relay for Life event at Newport Harbor High School on May 18 -19, ?013; met with British Ambassador, Sir Peter Westmacott, and presented him with a Key to the City; and visited Washington, D.C. and met with the Secretary of Transportation, Ray LaHood_ He announced that he will be hosting Meet the Mayor on Saturday, June 8. at 9:00 a.m. in the Civic Center Community Room and indicated that a tour of the Civic Center will be conducted after the event. MI. PUBLIC COMMENTS ON CONSENT CALENDAR Regarding Item 13 (Final Tract Map 16774 for Condominium Project at 1001 Santa Barbara Drive), Council Member Selich reported that the project will provide $5 million in public benefit fees, $5 million to Crystal Cove, over $2 million in park fees, and over $1 million in affordable housing fees. Mayor Curry noted that Item 14 (Quarterly Business Report) includes information about the City's financial condition. Jim Mosher took issue with the number of changes being made through Item 4 (Ordinance No. 2013- 11 Amending Various Provisions of the Newport Beach Municipal Code), adding that Title 17 amendments should be vetted through the Harbor Commission. He believed that the Citywide Bicycle Master Plan (Item 9) did not go before the Parks, Beaches and Recreation Commission. XIII. CONSENT CALENDAR. Volume 61 - Page 181 City of Newport Beach City Council Minutes May 28, 2013 A. READING OF MINUTES AND ORDINANCES 1. MINUTES FOR THE MAY 149 2013 STUDY SESSION AND REGULAR MEETING. [100 -20131 Waive reading of subject minutes, approve as amended, and order filed. 2. READING OF ORDINANCES. Waive reading in full of all ordinances under consideration, and direct the City Clerk to read by title only. B. ORDINANCE FOR INTRODUCTION 3. CODE AMENDMENT NO. CA2013 -002 AMENDING TITLE 15 OF THE NEWPORT BEACH MUNICIPAL CODE 1N RESPECT TO THE PERIODIC REVIEW OF DEVELOPMENT AGREEMENTS (PA2013 -082). 1100-20131 Introduce Ordinance No- 2013 -10, An Ordinance of the City Council of the City of Newport Beach Amending Chapter 15.45.080 of the Newport Beach Municipal Code Relating to the Periodic Review of Development Agreements (PA2013 -082), a) finding that this Code Amendment is not subject to the California Environmental Quality Act ("CEQA ") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines; and b) approving Code Amendment No. 2013 -002, and pass to second reading on June 11, 2013- C. ORDINANCES FOR ADOPTION 4. ADOPTION OF ORDINANCE NO. 2013 -11 AMENDING VARIOUS PROVISIONS OF THE NEWPORT BEACH MUNICIPAL CODE. [100 - 20131 Conduct second reading and adopt Ordinance No. 2013 -11, An Ordinance of the City Council of the City of Newport Beach adding, amen,diag and repealing various provisions of the Newport Beach Municipal Coed. 5. ADOPTION OF ORDINANCE NO. 2013 -12: DISESTABLISHING THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT. [100. 201311 a) Conduct second reading and adopt Ordinance No- 2013 -12, An Ordinance of the City Council of the City of Newport Beach Repealing Ordinance No. 95 -50 and Ordinance No. 97 -37 and Disestablishing the Marine Avenue Business Improvement District; and b) approve and accept the BID Advisory Board's recommendation to donate any BID assets located in the public -right of way to the City and all other assets to the Balboa Island Improvement Association. 6. ADOPTION OF ORDINANCE NO. 2013 -13: DISESTABLISHING THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT. [100 -20131 Conduct second reading and adopt Ordinance No. 2013 -13, An Ordinance of the City Council of the City of Newport Beach Repealing Ordinance No. 95 -4 and Ordinance No. 98 -4 and Disestablishing the Central Balboa Business Improvement District, aka the Balboa Village Business Improvement District; and b) approve and accept the BID Advisory Board's recommendation to donate the BID's assets to the City. D. CONTRACTS AND AGREEMENTS Volume 61 - Page 182 City of Newport Beach City Council Minutes May 28, 2013 7. 19TH STREET TIDE GATE RETROFIT - NOTICE OF COMPLETION AND ACCEPTANCE OF CONTRACT NO. 4773. 1381100 -20131 a) Accept the completed work and authorize the City Clerk to file a Notice of Completion; b) authorize the City Clerk to release the Labor and Materials Bond 65 days after the Notice of Completion has been recorded in accordance with the applicable portions of the Civil Code; and c) release the Faithful Performance Bond one year after Council acceptance. 8. 16TH STREET PUMP STATION AND DOLPHIN AND TAMURA WATER WELLS IMPROVEMENTS - AWARD OF CONTRACT NO. 5196. [381100 -20131 a) Approve the project drawings and specifications; b) award Contract No. 5196 to SCW Contracting Corporation of Fallbrook, California, for the total bid price of $773,410.00, and authorize the Mayor and City Clerk to execute the contract; c) establish a contingency of $77,000 (10 percent) to cover the cost of unforeseen work not included in the original contract; and d) authorize the Mayor and City Clerk to execute Amendment No. 2 to Professional Services Agreement with Dudek and Associates of Encinitas, California, on a form approved by the City Attorney for additional construction support services for a not -to- exceed additional fee of $15,580.00. 9. APPROVAL OF PROFESSIONAL SERVICES AGREEMENT WITH ALTA PLANNING + DESIGN TO PREPARE A CITYWIDE BICYCLE MASTER PLAN (C- 5476). 1381100 -20131 a) Approve a Professional Services Agreement with Alta Planning + Design of Los Angeles, California, to create a Bicycle Master Plan for a not - to- exceed fee of $132,785.00, and. authorize the Mayor -and City Clerk to execute the Agreement; and b) approve Budget Amendment No. 13BA -43 creating a Bicycle Safety Fund Reserve and appropriating $132,785.00 from the Bicycle Safety Improvement Fund to Account No. 7014 - 03002024 for preparation of the Bicycle Master Plan and appropriating $8,000 from the Bicycle Safety Improvement Fund to Account No. 7014- C3002025 for the 32nd Street Bike Lane Striping Plan. 10. APPROVAL OF AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT WITH RABBEN/HERMAN DESIGN OFFICE FOR ADDITIONAL MARINA PARK DESIGN SERVICES - CONTRACT NO. 3897. 1381100 - 2014 Approve Amendment No. 2 to Professional Services Agreement (PSA) with Rabben/Herman Design Ofce (RHDO) for Professional Design Services at a not -to- exceed price of $340,925.00, and authorize the Mayor and City Clerk to execute the Amendment. 11. THIRD AMENDMENT TO THE JOINT POWERS AGREEMENT FOR THE METRO CITIES FIRE AUTHORITY (C- 3089). [381100 -20131 Approve and - authorize the Mayor and City Clerk to execute the Metro Cities Fire Authority Third Amended Joint Powers Agreement. E. MISCELLANEOUS 12. CONFIRMATION OF VOTING DELEGATE AND ALTERNATE FOR THE 2013 LEAGUE OF CALIFORNIA CITIES (LCC) ANNUAL CONFERENCE - SEPTEMBER 18 -20, 2013, IN SACRAMENTO. [100 -2013] a) Designate Mayor Keith Curry as the City's Voting Delegate and Mayor Pro Tem Rush Hill as the City's Alternate Voting Delegate at the annual League conference to be held from September 18 -20, 2013, in Sacramento; b) direct the City Clerk to complete and submit the League Volume 61 - Page 183 City of Newport Beach City Council Minutes May 28, 2013 designation form by Friday, August 23, 2013; and c) authorize Mayor Curry and /or Mayor Pro Tem Hill to attend the annual League conference pursuant to Charter Section 402 and City Council Policy F -8. 13. FINAL TRACT MAP NO. 16774 FOR CONDOMINIUM PROJECT AT 1001 SANTA BARBARA DRIVE. 1100 -20131 Review and approve Final Tract Map No. 16774 located at 1001 Santa Barbara Drive pursuant to Section 19.60.010 of the Newport Beach Municipal Code. 14. QUARTERLY BUSINESS REPORT - JANUARY THROUGH MARCH 2013. [100- 2013] Receive and file. 16. SET PUBLIC HEARING DATE TO ADOPT FISCAL YEAR (FY) 2013 -14 BUDGET. [100 -20131 Schedule a public hewing of the City's Proposed Budget for FY 2013 -14 on June 11, 2013, and direct the City Clerk to publish a notice of said hearing in accordance with Section 1102 of the Newport Beach Charter_ Motion by Council Member Petros seconded h1r -Council Member Selich to approve the- Consent Calendar. The motion carried by the following roll call vote.: Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Mayor Pro Tem Hill XIV. ITEMS REMOVED FROM THE, CONSENT CALENDAR - None XV. PUBLIC COMMENTS ON NON AGENDA ITEMS Suzanne Babbuah displayed and provided photographs of the parking structure as viewed from her residence, and recommended that some type of planting be erected on the MacArthur Boulevard side. She also requested that the lights be turned off at night. Jim Mosher believed ;,hat it is difficult to verify that the City is following its budget and discussed City authorized travel for Council Members and staff. Jim Warren stated that, during the Memorial Day weekend, all the lights were on in City Hall and the Central Library from Friday to Monday. He also discussed the lighting of the sail and the brightness of the message board in the Council Chambers vestibule. XVI. ORAL REPORTS FROM CITY COUNCIL ON COMMITTEE ACTIVITIES Council Member Petros discussed the Relay for Life Event held at Newport Harbor High School from May 18 -19, 2013, reported that the event raised about $40,000, and noted that Council had a team, the Council Critters. He also reported that he will be speaking at the Stop Polluting Our Newport (SPOT) meeting on June 1, 2013, at 30:00 a.m. at the Environmental Nature Center (ENC). Regarding travel expense concerns, Council Member Daigle pointed out that the City Council does not have City offices and are not provided car or cell phone allowances. Council Member Henn noted that he flew in from Chicago to attend tonight's meeting, will be flying back to Chicago tomorrow Volume 61 - Page 184 City of Newport Beach City Council Minutes May 28, 2013 morning, and emphasized that he is paying for his travel expenses himself. Council Member Selich announced that the General Plan/Local Coastal Program Implementation Committee will be meeting in the Corona del Mar Conference Room (Bay E, 1st Floor) on Wednesday, May 29, at 3:30 p.m. XVII. PUBLIC HEARING 16. MARINA PARK COASTAL LAND USE PLAN AMENDMENT NO. LC2012 -002 - 1600 WEST BALBOA BOULEVARD. [100 -2013] Planning Manager Alford provided a staff report and reported that, if the resolution is adopted, the City cannot proceed with the Coastal Development Permit, including the lighthouse feature, until the California Coastal Commission certifies the resolution. In response to Council Member Petros' question, Planning Manager Alford confirmed that the following language has been included in the resolution: 1) the resolution is being adopted pursuant to the modifications approved by the Coastal Commission, 2) the project will be done in compliance with the Coastal Act, and 3) the resolution will not become effective until it is certified by the Coastal Commission's Executive Director. Mayor Curry opened the public hearing. Hearing no testimony, he closed the public hearing. Motion by Council Member Petros, seconded by Council Member Henn to adopt Resolution No. 2013 -44, A Resolution of the City Council of the City of Newport Beach Approving Coastal Land Use Plan Amendment No. LC2012•.002 to Policy 4.4.2 -1, as Modified by the California Coastal Commission in Respect to Marinas Park (P42012 -099), that 1) finds the California Environmental Quality Act ( "CEQA ") to be satisfied by the May 11, 2010, City Council certification of the Marina Park Project Environmental Impact Report (EIR) (SCH #2008051096) in compliance with the CEQA. the State CEQA Guidelines, and City Council Policy K -3, and 2) approves Coast 1l band Use Plan Amendment No. LC2012 -002, as modified by the California Coastal Commission. The motion carried by the following roll call vote: Ayets : Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Mayor Pro Tem Hill XVIII. CURRENT BUSINESS 17. DONATION AGREEMENT WITH CRYSTAL COVE ALLIANCE FOR PHASE III COTTAGE RESTORATION (C- 5484). [3981100 -2013] City Manager Kiff noted that the item was discussed during Study Session's budget deliberations and reported that the City would transmit $20,000 /year of Transient Occupancy Tax (TOT) to Crystal Cove in order to assist them with Phase III renovations. Mayor Curry added that 17 cottages still need restoration at Crystal Cove and that the cottages generate TOT for the City. He explained that, in order to finance the restoration, the State raised rates and that the amount of TOT the City would receive on the increased rate is about $20,000 a year. He reported that the City is basically agreeing to provide a donation Volume 61 - Page 185 City of Newport Beach City Council Minutes May 28, 2013 equivalent to the increase of the TOT for a specified amount of time to help them finance the restoration, which will eventually generate additional TOT to the City. Motion by Council Member Daigle, seconded by Council Member Selich to a) authorize the City Manager to enter into a Donation Agreement with Alliance to provide funding for the Project; and b) waive the administrative and Finance Committee grant /funding application review processes located in Resolution No. 2012 -117. The motion carried by the following roll call vote: Ayes: Council Member, . Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Mayor Pro Tem Hill 18. APPOINTMENT TO THE ENVIRONMENTAL QUALITY AFFAIRS COMMITTEE (EQAC). [100 -2013] City Clerk Brown provided paper ballots and Announced the following votes: Mark Tabbert - Gardner Charles McKenna - Petros, Selich, Daigle, Henn Joan Penfd - Mayor Curry City Clerk Brown announced that Charles McKenna was appointed to EQAC. 19. INITIATE AMENDMENTS TO THE LAND USE ELEMENT, COASTAL LAND USE PLAN, ZONING CODE, AND /OR ZONING MAP, AND BUDGET AMENDMENT TO TRANSFER FUNDS- FROM THE UNAPPROPRIATED GENERAL FUND TO AN EXPENDITURE ACCOUNT (PA2013 -098). [100 -20131 Community Development Director Brandt utilized a PowerPoint presentation to discuss the processes that would initiate amendments to the Land Use Element (LUE) of the Genera: Plan. She noted that , the Coastal Land Use Plan, Zoning Code, and possibly som( Development Agreements may need amending in conjunction to the LUE. She highlighter possible LUE amendments and indicated that staff is requesting that Council initiate the amendments and form a Land Usc• Element Amendment Advisory Committee composed of twc Council Members, two Planning Commissioners, and three citizens. She reviewed the procesf and timeline, and pointed out that voter consideration of the General Plan is anticipated at the November 2014 General Municipal Election. She noted that only amendments to the Genera- Plan's LUE require voter approval. Mayor Curry commended staff, but recommended that the committee be comprised of fivc citizens, not just three citizens. He indicated that the citizens would need to apply for the committee and follow Council Policy A -2 (Appointments to .boards, Commissions anc Committees). Council Member Petros noted that the General Plan should be reviewed every 5 to 10 year; and that, at this point, the amendment process would be trip neutral. He believed that thi; process would maintain the City's quality of life in the future. Jim Mosher noted that it would cost about $500,000 to hire the consultant; believed that thi,, is being done to benefit The Irvine Company, so they should pay for the consultant; anc questioned the appointment process_ Volume 61 - Page 186 City of Newport Beach City Council Minutes May 28, 2013 Council Member Gardner reiterated that the appointment process will follow the normal procedures. Council Member Petros took issue with Mr. Mosher's comments, reporting that he has received many letters from local businesses along Mariners Mile requesting LUE changes and emphasized that this is not being considered for the benefit of The Irvine Company. He pointed out that the process will allow for public dialogue to determine the future of the City. Motion by Council Member Selich, seconded. by Council Member Henn to a) initiate an amendment of the General Plan Land Use Element, as well as companion amendments to the Coastal Land Use Plan, Zoning Code, and /or Zoning Map; b) adopt amended Resolution No. 2013 -45, A Resolution of the City Council of the City of Newport Beach Establishing the 2013 Land Use Element Amendment Advisory Committee; and c) approve Budget Amendment No. 13BA -045 to increase expenditure appropriations in the Planning Division's Professional & Technical Account, 2710 -8080, by $500,000 from General Fund unappropriated fund balance. The motion carried by the following roll call vote- Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Mayor Pro Tem Hill 20. BUDGET AMENDMENT TO UPDATE CERTAIN REVENUES ESTIMATES, AND AUTHORIZE FUND TRANSFERS AND INCREASE EXPENDITURE APPROPRIATIONS. [100 -2013] City Manager Kiff reported that this item was detailed during the Study Session's budget discussions. Motion by Council- Memher Selich, seconded by Council Member Petros to a) pursuant to Council Policy F -2 (Reserves). approve Budget Amendment No. 13BA -041 that appropriates the City Manager assignments of fund balance that were the result of Fiscal Year 2011 -12 surpluses. The total amount assigned by the City Manager was $13,582,180 and the budget amendment appropriates $5,043,503 (the remaining balance was expended through ;previous Council appropriations or released to fund balance); b) approve Budget Amendment No. 13BA -042 that increases General Fund revenue estimates by $6,205,629. This action will align the budget with the revenue estimates_ that are forecasted through the end of FY 2012 -13; and c) approve Budget Amendment No. 13BA -044 that records interfu.nd transfers totaling $25,441,983, and increases General Fund expenditure appropriations by $633,000, Building Excise Tax Fund expenditure appropriations by $500,000, Equipment Fund expenditure appropriations by $542,182, and IT Strategic Fund expenditure appropriations by $861,913. The motion carried by the following roll call vote: Ayes: Council Member Gardner, Council Member Petros, Mayor Curry, Council Member Selich, Council Member Henn, Council Member Daigle Absent: Mayor Pro Tem Hill XDC MOTIONS FOR RECONSIDERATION - None Volume 61 - Page 187 City of Newport Beach City Council Minutes May 28, 2013 30C ADJOURNMENT - 7:42 p.m The agenda for the Regular Meeting was posted on May 23, 2013, at 4:00 p.m on the City's website; on May 24, 2013, at 8:30 a.m. on the City Hall Bulletin Board located in the entrance of the City Council Chambers at 100 Civic Center Drive; and on May 24, 2013, at 9:00 a .m. on the City Hall Electronic Bulletin Board located in the entrance of the City Council Ch ambers at 100 Civic Center Drive. Cit3 00< Recording Secretary Mayor Volume 61 - Page 188